Pepkor’s profit dragged down by doubled finance charges
Shareholders of the holding company of Pep and Ackermans will receive a maiden dividend of 27.8c, a third of its earnings for its first year on the JSE
A doubling of finance charges dragged Pepkor's net profit down 19% despite it growing sales 11%, its 2018 financial year results released on Monday morning showed. The retail group — whose chains include Pep, Ackermans and Tekkie Town — issued its results for the year to end-September an hour after the JSE fined it R5m for failing to adequately disclose liabilities to its parent group Steinhoff International and its senior management. “As described in the pre-listing statement, significant shareholder funding was introduced in the group’s capital structure upon listing. This resulted in an increase in net finance costs from R620m in the 2017 financial year to R1.2bn in the current year,” Pepkor CEO Leon Lourens said in the results statement. Pepkor declared a 27.8c maiden dividend. The retailer said it had revised its dividend policy to three times earnings cover. The per share dilution caused by its number of shares in issue increasing 34% to 3.45-billion at September 30 from 2.57-...
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